Tier 1: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
(Add definition - source - The Treasurer, Issue 2, May 2023, p10.)
 
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''Banking - capital adequacy.''  
1. ''Banking - capital adequacy''  


(T1).
(T1).
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Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds.
Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds.


Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1) according to its loss-absorbing quality.
Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1), CET1 having superior loss-absorbing quality.




Tier 2 capital comprises eligible long dated subordinated debt.  
2.
 
Abbreviation for Tier 1 executive.
 
 
3. ''Investment banking''.
 
Tier 1 investment banks are the largest globally across multiple product categories.
 
They include JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley and Bank of America.
 
 
4.
 
More generally, any larger, better known or more competent entity.
 
 
 
5.  ''Business relationships - supply chains - suppliers.''
 
Another organisation that our organisation deals with directly.


(Tier 2 is sometimes known as 'gone concern' loss absorbing capital.)




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* [[Capital]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital Adequacy Directive]]
* [[Capital Requirements Directive]]
* [[Common Equity Tier 1]]
* [[Common Equity Tier 1]]
* [[CRD IV]]
* [[CRD IV]]
* [[Equity]]
* [[Equity]]
* [[Going concern]]
* [[Going concern]]
* [[Gone concern]]
* [[Investment bank]]
* [[Leverage Ratio]]
* [[Perpetual bond]]
* [[Preferred shares]]
* [[Principal write down]]
* [[Principal write down]]
* [[Subordinated debt]]
* [[Subordinated debt]]
* [[T2]]
* [[Supplier]]
* [[Supply chain]]
* [[Tier 1 executive]]
* [[Tier 1 supplier]]
* [[Tier 2]]
* [[Tier 2]]
* [[Tier 2 supplier]]
* [[Tier 3 supplier]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Latest revision as of 11:48, 17 May 2023

1. Banking - capital adequacy

(T1).

Tier 1 is the highest quality capital.

Contrasted with Tier 2, which is of lower quality.


Tier 1 is sometimes known as 'going concern' loss absorbing capital.


Tier 1 principally comprises equity, subject to regulatory deductions and the inclusion of some preferred shares and some perpetual bonds.

Tier 1 capital is classified as Common Equity Tier 1 (CET1) or Additional Tier 1 (AT1), CET1 having superior loss-absorbing quality.


2.

Abbreviation for Tier 1 executive.


3. Investment banking.

Tier 1 investment banks are the largest globally across multiple product categories.

They include JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley and Bank of America.


4.

More generally, any larger, better known or more competent entity.


5. Business relationships - supply chains - suppliers.

Another organisation that our organisation deals with directly.


See also